Producer Price Index (PPI) — Year-over-Year vs 2-Year Treasury Yield
Producer Price Index (PPI) — Year-over-Year is currently 2.7% (down -0.5%). 2-Year Treasury Yield is currently 3.7% (down -0.3%).
| Metric | Producer Price Index (PPI) — Year-over-Year | 2-Year Treasury Yield |
|---|---|---|
| Current value | 2.7% | 3.7% |
| Previous reading | 3.2% | 3.99% |
| Change | -0.5% | -0.3% |
| Trend | down | down |
| Frequency | Monthly | Daily |
| Source | Bureau of Labor Statistics | U.S. Treasury |
| Last updated | 2026-03-13 | 2026-04-04 |
| Category | inflation | rates |
What Producer Price Index (PPI) — Year-over-Year measures
The Producer Price Index measures the average change in selling prices received by domestic producers for their output. It is a leading indicator of consumer inflation — rising producer costs eventually get passed to consumers.
PPI declining to 2.7% from 3.2% signals easing upstream cost pressures. For executives, falling producer prices suggest input cost relief is coming — raw materials, components, and wholesale goods are becoming cheaper relative to recent months. This is bullish for profit margins if selling prices remain stable.
What 2-Year Treasury Yield measures
The 2-year Treasury yield reflects market expectations for short-term interest rates over the next two years. It is the most sensitive government bond to Federal Reserve policy changes.
The 2-year yield at 3.71% — well below the current fed funds rate of 4.50% — signals that markets expect the Fed to cut rates. The wider this gap, the more aggressively markets expect easing. For CFOs, short-term borrowing costs may decline sooner than long-term rates, favoring shorter-duration financing strategies.
Frequently asked
Producer Price Index (PPI) — Year-over-Year is currently 2.7%, down -0.5% from the previous reading. Source: Bureau of Labor Statistics, updated monthly.
2-Year Treasury Yield is currently 3.7%, down -0.3% from the previous reading. Source: U.S. Treasury, updated daily.
PPI declining to 2.7% from 3.2% signals easing upstream cost pressures. For executives, falling producer prices suggest input cost relief is coming — raw materials, components, and wholesale goods are The 2-year yield at 3.71% — well below the current fed funds rate of 4.50% — signals that markets expect the Fed to cut rates. The wider this gap, the more aggressively markets expect easing. For CFOs